Auto Expo 2012: Toyota eyes India JVs to expand components business

NEW DELHI: Ravaged by the tsunami in Japan and flash floods in Thailand, the world's largest carmaker Toyota is looking to set up new joint ventures in India to expand its component business which got badly affected by the recent natural disasters, said a top executive of the Japanese company.

Toyota, which operates in India through a local subsidiary, Toyota Kirloskar Motor ( TKM), has large manufacturing operations in Bangalore which would be developed as alternative locations for automotive components.

Speaking to ET, Toyota Motor Asia-Pacific President Hiroji Onishi said, "We are working out details to increase our interface and partnership with the Indian partner as components are integral part of our manufacturing business. Till now, our supply network is concentrated in Thailand which we intend to reduce with more sourcing from the Indian market."

The new Toyota cars - Etios (sedan) and the Liva (hatchback) - have helped the company post strong results in India as sales grew 82% to 1.36 lakh cars in 2011. The company also plans to improve the quality of its component suppliers in India to avoid vehicle recalls in the domestic market. This comes after Toyota had recalled 41,000 units of its Etios sedan and Liva compact car last month to replace a faulty inlet hosepipe to the vehicle's fuel tank.

"We have made strong plans to expand the Indian market by offering quality, yet affordable cars like Etios and Liva. For this, we had to select new suppliers. This new business association has led to some problems that we need to fine-tune as we aim to become a major player in the Indian market," Mr Onishi added.

Toyota would start exporting its India-centric car Etios to South Africa from March this year.